Procter & Gamble (NYSE: PG) reported Q4 EPS of $1.40, $0.03 better than the analyst estimate of $1.37. Revenue for the quarter came in at $20.53 billion versus the consensus estimate of $20.73 billion.

GUIDANCE:

Procter & Gamble sees FY2025 EPS of $6.91-$7.05, versus the consensus of $6.96.

• P&G expects fiscal year 2025 all-in sales growth in the range of two to four percent versus the prior year. Foreign exchange is expected to be a headwind of approximately one percentage point to all-in sales growth. The Company expects organic sales growth in the range of three to five percent.
• P&G expects fiscal 2025 diluted net earnings per share growth in the range of 10% to 12% versus fiscal 2024 GAAP EPS of $6.02. P&G expects its fiscal 2025 core net earnings per share growth in the range of five to seven percent versus fiscal 2024 core EPS of $6.59. This outlook equates to a range of $6.91 to $7.05 per share, with a mid-point estimate of $6.98, or an increase of 6%.
• The Company said its outlook estimates a net headwind of around $500 million after-tax from unfavorable commodity costs and unfavorable foreign exchange. The net headwind equates to a $0.20 per share for fiscal 2025, or a three percentage drag on core EPS growth.
• In addition, the prior fiscal year included benefits from minor brand divestitures and tax impacts that are unlikely to repeat to the same extent in the new fiscal year. Combined, these are an additional $0.10 to $0.12 headwind to core EPS.
• The Company is not able to reconcile its forward-looking non-GAAP cash flow and tax rate measures without unreasonable efforts given the unpredictability of the timing and amounts of discrete items, such as acquisitions, divestitures, or impairments, which could significantly impact GAAP results.
• P&G said it expects a core effective tax rate to be in the range of 20% to 21% in fiscal 2025.
• Capital spending is estimated to be in the range of four to five percent of fiscal 2025 net sales.
• P&G said it expects adjusted free cash flow productivity of 90% and expects to pay around $10 billion in dividends and to repurchase $6 to $7 billion of common shares in fiscal 2025.

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